BUDAPEST—Hungary's central bank could continue monetary easing to pursue price stability, it said Tuesday, after it cut the main interest rate to an all-time low.

The National Bank of Hungary cut its main rate to 2.40% from 2.50% as it attempted to cement the country's economic recovery. The economy grew 1.1% in the first four months of the year from the previous quarter and by a robust 3.5% from a year earlier.